In an effort to raise capital, low-cost airline EasyJet Plc is looking to sell 1.2 billion pounds ($1.65 billion) worth of shares in the company. This comes after the airline reportedly rejected an unsolicited takeover approach because this would undermine the values of the company.
In order to create an additional buffer, the United Kingdom airline is also looking to raise $400 million in debt, thereby accumulating the financial backing it needs to ensure a smooth return to leisure travel as flights pick up following widespread easing of coronavirus restrictions.
EasyJet revealed in a statement that the original approach was all-stock and contained a low premium. Ultimately, the bid was rejected in a timeous manner.
Since the start of the pandemic, the U.K.-based budget airline has raised over 5.5 billion pounds in liquidity. With the global travel industry no longer subject to the restrictions that were enforced at the peak of the pandemic, the company is still in the midst of reviewing its capital structure in order to complete a smooth transition back to full capacity flying. Currently, EasyJet is looking to fly at approximately 57% capacity during the fourth fiscal quarter.
